As the government swayed India’s cash economy with sudden demonetization in Nov 2016 and people found themselves stripped of hard cash for days to come, a cash crunch groped the economy and we fell dependent on cloud transactions i.e. online transactions. A country like India is pushing for a cashless economy where there is a heavy reliance on the Internet for buying and selling daily commodities, transferring and receiving payments. The cashless digitization was the only option then, and since the hang, there has been no looking back.
After the demonetization drive in November last year, in an effort to rule out the black money, a cashless economy replaced the traditional mode of cash transactions. Since then ‘Digital’ is considered to be the future and today the society is focusing on cutting the transactions in cash. Paytm, UPI, BHIM, and many more payment gateway applications have taken the charge. From milkman to grocers, everyone had to take shelter of the electronic mode of cashless payment to survive, and this situation opened doors to going cashless in unimaginable corners of the country.
A cashless residential economy is a part present and the guaranteed FUTURE of India for the below reasons.
People tasted the ease of making transactions using the electronic medium when demonetization choked the cash flow. And having experienced the simplicity, convenience, and speed offered by the cashless mode of payments, the society adopted the medium religiously. The ease of transferring money through NEFT, RTGS, IMPS, Paytm and other modes has paved way for universal availability of money to all requiring no physical infrastructure other than digital. People are still following the same and are sure to rise up with it in the future.
People have been showered with great discounts and offer to promote digital transactions by the government. For example, in 2016, the government waived service tax on debit and credit card transactions of up to Rs 2,000 in a bid to promote digital transactions. Another incentive provided by the government is a 0.75% discount on fuel purchases made using either credit/debit cards which means a rebate of 49 paise a liter on petrol and 41 paise on diesel. Add to these the cashback offers and discounts offered by mobile wallets like Paytm and the trend is here to stay.
Digital payment applications provide a dashboard to the user to keep a track record of their spending every time they make a digital payment. This has been exceptionally useful in monitoring, managing and balancing the money spent. It will also help while paying the taxes and in case of scrutiny, people will find it easy to explain their spending.
We all have now or then faced an unaccounted loss of loose change or smaller currency which adds up to be a decent amount. Digital economy and cashless transactions will eliminate insignificant losses because of the unavailability of hard cash in the form of coins and smaller currency notes. Also if the same amount of cash does not flow back into circulation and people continue to make online transactions, it is also likely to bring down unconscious spending. This way you spend a little less and save a little more.
Digital and cashless transactions have zeroed the chances of theft and robbery of cash from ones’ possession as it completely rids people of the need to carry any cash. If your credit card or debit card is stolen, it is easy to block them remotely, but it’s impossible to get your cashback. Thus the digital option provides enhanced security.
So cash may no longer be the king for residential societies and the adoption of digital payment solutions is picking up fast among society members. This ensures that the digitization trend has invaded to stay forever and a cashless residential society is a future.
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